Cadbury India Social Respponsibility Essay Example

fall as a result. Along with good corporate governance, ethical behaviour is an integral part of everything that Cadbury Schweppes does. Treating stakeholders fairly is seen as an essential part of the company’s success, as described here: “A creative and well managed corporate and social responsibility programme is in the best interests of all our stakeholders - not just our consumers - but also our shareowners, employees, customers, suppliers and other business partners who work together with us. ” Ensuring that employees understand the company’s corporate values is achieved by the statement of ‘Our Business Principles’ which makes clear the behaviour it seeks from employees. Cadbury Schweppes’ good practice was recognised when it was voted one of the “most admired companies for community and environmental responsibility” by Management Today magazine in 2003. It was also ranked second in the Food and Drink sector in the Business in the Community “Per Cent Club” Index of corporate giving for 2003, with an investment in the community of around 3% of its UK pre tax profits. Cadbury Schweppes was formed by a merger in 1969 between Cadbury and Schweppes. Since then the business has expanded into a leading international confectionery and beverages company. Through an active programme of both acquisitions and disposals the company has created a strong portfolio of brands which are sold in almost every country in the world. Cadbury Schweppes has nearly 54,000 employees and produces Fast Moving Consumer Goods (FMCG). Its products fall into two main categories: Regulators Cadbury Schweppes Consumers ? ? onfectionery beverages. Community Environment Customers Its portfolio of brands include leading regional and local brands such as Schweppes, Dr Pepper, Orangina,

Halls, Trebor, Hollywood, Bournvita, and of course, the Cadbury masterbrand itself. These products are sold in a range of countries depending on consumer preferences and tastes. The core purpose of Cadbury Schweppes is “working together to create brands people love”. It aims to be judged as a company that is among the very best in the business world – successful, significant and admired.

The company has set five goals to achieve this, one of which relates to Corporate Social Responsibility (CSR) - “To be admired as a great company to work for and one that is socially responsible to its communities and consumers across the globe”. The original Cadbury company was heavily influenced by the Quaker values of the Cadbury family who started the chocolate business over 150 years ago. The Quakers promote justice, equality and social reform. The legacy of these ideals informs Cadbury Schweppes’ culture today and unites its many businesses around the world who uphold this heritage and act in an ethical manner.

From the outset, Cadbury treated employees with respect and cared for their welfare. The company’s site at Bournville, near Birmingham, has always been more than just a factory having extensive amenities such as housing, sports facilities and parks all being part of the original complex. Cadbury Schweppes Corporate and Social Responsibility Report 2002 Ethics at work 3 The supply chain and distribution process This describes the way in which raw materials are sourced and transformed into final products and delivered to customers.

Cadbury Schweppes has direct control over what happens in the transformation stage of its own process and can also influence the behaviour of suppliers and distributors. For example, it performs

due diligence on potential suppliers by requesting them to complete a questionnaire prior to engagement. This enables Cadbury Schweppes to monitor a supplier and check they adhere to stringent standards in particular criteria. One criteria, for example, may be the environment and the questionnaire allows the supplier to express whether they carry out audits or have an environmental policy.

Cadbury Schweppes does not market beverages in the UK The importance of ethics in business 2 Ethics concern an individual’s moral judgements about right and wrong. Decisions taken within an organisation may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company. The decision to behave ethically is a moral one; employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit. visit www. tt100. biz EDITION for Downloads • Theory • Quizzes • Company Info • Current and Previous Case Studies a) Dealing with suppliers Cadbury Schweppes deals with tens of thousands of suppliers around the world and aims to work closely with them to ensure they receive fair treatment. In the case of cocoa farmers for example, Cadbury Schweppes is a member of a global coalition, which is comprised of industry, governments, non-government organisations and special interest groups created to improve working practices on cocoa farms. The coalition has funded independent surveys into cocoa farming in West Africa that have contributed to the development of programmes to help local communities.

In 2003, the coalition also established a foundation, the International Cocoa Initiative - Working Towards Responsible Standards for Cocoa Growing, which aims

to support field projects and will act as a clearinghouse for best practices to ensure that cocoa is grown responsibly. The work of the coalition, however, is only one way to support cocoa farmers and their families. Another practice is Fair Trade. Under this scheme cocoa is paid for at a fixed minimum price with a premium going to the farmer co-operatives in exchange for using the Fair Trade logo and accreditation.

Presently, a modest amount of cocoa goes to the Fair Trade market. This scheme works best when farms have access to communications and warehousing facilities. Many farms, however, are family owned operations in remote areas and access to a Fair Trade cooperative group may be difficult so the coalition is working to ensure these farms can benefit from the work that it does. It is Cadbury Schweppes aim to help all cocoa farmers improve their standard of living by helping them develop sustainable crops of quality beans.

In Ghana, for example, where Cadbury Schweppes buys most of its cocoa, the company supports farming communities through programmes on sustainable tree crop management and building wells for drinking water. b) Manufacturing As a major international company Cadbury Schweppes recognises its environmental responsibilities and the need to care for its workforce, local communities and all those who may be affected by its activities. For example, its environmental responsibilities include: 5 Conclusion Cadbury Schweppes aims to lead the way with its ethical approach in business.

Its core underlying values influence all its decisions throughout the value chain. Its stance on issues is clearly communicated both internally and externally to ensure its position is fully understood and to invite its stakeholders

to share in it. This approach has contributed to the success of the business and has enabled it to become the world's leading confectionery company and third largest soft drinks company. ? ? ? treating waste water prior to disposal looking to improve its energy efficiency controlling the release of gases into the atmosphere. c) Distribution – to wholesalers and retailers

The company aims to keep within acceptable limits the fuel consumption and air emissions that result from transporting its products. In the UK, for example, drivers are trained in the most efficient ways to operate their vehicles, which are also regularly maintained to keep them running at optimum efficiency. Ethics and employment policies 4 d) Dealings with consumers Cadbury Schweppes is committed to providing a range of high quality treats, refreshments and confectionery based oral care products which are marketed truthfully, labelled clearly and meet the highest safety standards.

For that reason the Cadbury Schweppes corporate social responsibility agenda now reflects growing consumer interest in issues of diet, nutrition and healthy lifestyle, and the way brands are marketed, especially to children. The company also believes it is important to be open about its activities so its stakeholders can measure its success. Information is readily available in its reports and on its website regarding its progress in: Greater diversity in the workplace encourages different ways of looking at and solving problems and may lead to greater creativity.

To achieve such diversity, the company provides equal opportunities for its recruits regardless of gender, age, marital status, sexual orientation, disability, race or religion. Vacancies are advertised worldwide via the company's websites and intranet so that employees can switch from one

part of the organisation to another. Once employed, Cadbury Schweppes provides career opportunities to enable staff to develop personally and grow in terms of experience and skills. The company’s performance appraisal system provides a regular opportunity to review an individual’s strengths and progress and construct development plans for each person.

By allowing each individual employee to develop, the company can develop as a whole. Other factors in its treatment of staff that reflect a socially responsible approach include: Glossary Consumers: People who use/consume a product. Corporate governance: The process for ensuring accountability to stakeholders so their aims take precedence over the needs of others. Corporate Social Responsibility (CSR): A commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Customers: People who buy a product. Ethical behaviour: Moral principles or rules of conduct and behaviour accepted by members of society. Farmer co-operatives: A form of business in which groups of farmers work together to share resources and rewards. Fast Moving Consumer Goods (FMCG): Retail products that consumers buy frequently and re-purchase often. Merger: Occurs when two or more organisations join together to form a united business. Stakeholder: An individual or group that is affected in some way by a firm’s activities. Value chain: The series of links that starts with raw materials (e. . cocoa for chocolate) and ends with the consumer. ? ? community initiatives and employee volunteering environmental impact. ? ? ? ? ? High levels of consultation that involve employees in decisionmaking. The company values discussion so that employees understand

the nature of a problem, feel part of the process of finding a solution, and identify with the outcome. Offering appropriate levels of remuneration and rewards. Cadbury Schweppes regularly benchmarks its levels of pay against other companies to ensure it is competitive.

Staff are also encouraged to have shares in the company and can purchase shares at a reduced price. Development and training is offered so employees are better able to carry out their duties and are more motivated in their work. The creation of a healthy and safe working environment so employees feel safe at work. The prevention of any form of harassment in the workplace. For more information about Cadbury Schweppes please browse: Cadbury Schweppes has produced a formal statement of its policies towards employees that is part of a document called its Human Rights and Ethical Trading (HRET) Policy. ww. cadburyschweppes. com visit www. tt100. biz EDITION for Downloads • Theory • Quizzes • Company Info • Current and Previous Case Studies 9 The Times Newspaper Limited and ©MBA Publishing Ltd 2004. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission. When recruiting staff, Cadbury Schweppes is eager to encourage diversity in the workplace. It therefore encourages applications from a wide range of people.